China outage ‘costs world economy $200m’

E-commerce

by Joe Curtis| 22 January 2014

Compuware estimates downtime lasted for eight hours, hitting online sales.

The shockwaves of China's internet outage were felt worldwide through the loss of $200m in online sales over eight hours, it is estimated.

Compuware used its global application performance monitoring (APM) service to estimate the length of time Chinese users trying to access popular websites were redirected to Dynamic Internet Technology (DIT) yesterday, a company selling anti-censorhip web services to Chinese citizens.

Michael Allen, VP of Compuware's APM technology, added that based on the $200bn annual worth of China's online sales, the eight-hour downtime cost the global economy $200m.

He said: "It's crazy that one DNS [Domain Name Server] issue could have such an impact. When you consider the population affected, this was one of the biggest outages we've ever seen, with one-seventh of global internet users impacted.

"However, the impact wasn't just on Chinese internet users; companies around the world lost out on $200 million in online sales during the eight-hour period."

Analysts believe serious errors in the country's so-called 'Great Firewall' were to blame for two-thirds of its citizens being rerouted, after Chinese hacker communities claimed a government technician may have accidentally routed traffic to the DIT site.

DIT said it had nothing to do with the problem.

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